The Creation and Preservation of Affordable Housing in Illinois for the
The year 2017 marks the 50th anniversary of the creation of the Illinois Housing Development Authority (IHDA, the Authority) by the Illinois Legislature. IHDA began as a financially independent agency with less than a dozen employees and a clear mission – to finance the creation and preservation of affordable housing. Fifty years, $18 billion and 255,000 units later, one thing is clear: IHDA is a major generator of housing and a significant contributor to the economic development of Illinois.
In honor of this anniversary, this annual report takes a look back at some major milestones from the past five decades as we collaborated with developers, lenders, management companies, local officials and others to find creative and cost-effective solutions to our most challenging housing issues. It has been a remarkable 50 years made possible by the work of both IHDA’s staff and our partners, and we are excited to build upon these successes as we look to the years ahead.
The History of IHDA
IHDA Annual Report
F I S C A L Y E A R 2 0 1 7
In Fiscal Year 2017, IHDA invested $1.4 billion in 10,200 units of affordable housing, generating $840 million for Illinois’ economy, creating 9,700 full-time jobs and helping thousands of families find quality, affordable homes throughout the state.
The most prevalent housing challenges facing Illinois in Fiscal Year 2017 were homeowners still struggling to save their homes from foreclosure almost one decade after the economic crisis of 2008, recovery and revitalization needs at the local level, and the demand for more supportive housing for the state’s most vulnerable populations. IHDA met each of these challenges with tangible results.
In FY17, IHDA’s mortgage assistance and foreclosure mitigation programs provided $26.8 million to help 14,100 families save their home or find the best possible solution for their specific situation. FY17 also saw IHDA close over $800 million in loans with 5,900 homebuyers, the majority of which purchased their first home in a community targeted for revitalization. Finally, on the rental housing side of our business IHDA invested $632.4 million and leveraged $268.9 million to build or preserve 4,300 units in 48 developments, and launched a special financing round for properties serving supportive housing populations.
IHDA Resources and Financial Stability Yield Strong Results
IHDA Resources and Financial Stability Yield Strong Results
IHDA is a bonding authority and independently sells bonds and other debt instruments to support our activities. Our financial strength enables us to access capital at a lower cost and transfer the savings to homeowners and developers in the form of lower interest rates.
FY2017 RESOURCE HIGHLIGHTS
The Authority successfully maintained a strong rating with the issuer credit ratings of A1, AA-, and AA- from Moody’s Investors Service, Standard & Poor’s, and Fitch Ratings, respectively. In addition, S&P upgraded their ratings on IHDA’s Housing Bond Indenture to AA+. The Authority also issued $168.1 million in single family tax-exempt bonds for our first-time homebuyer loan program, $26 million in new issue multifamily tax-exempt bonds, $117.4 million in economic refunding of prior Authority bonds, $38.3 million and $79.1 for single family and multifamily respectively, and issued three new series of short-term tax-exempt Multifamily Collateralized Revenue Notes totaling $42.5 million to finance the acquisition and rehabilitation of three affordable multifamily developments. In addition to the issuances of bonds, as discussed above, the Authority also partnered with the Federal Financing Bank (“FFB”) on a multifamily risk share program. This risk share program has allowed the Authority to increase originations and add insured long term assets to our portfolio. The Authority has created $51.4 million in such assets for FY2017.
Financial Information Review
Independent accountants as special assistant auditors to the Auditor General of the State of Illinois have performed a financial audit of the authority. Reports on the financials for the years ended June 30, 2017, and supplementary financial reports for the year have been prepared in accordance with the Single Audit Act of 1984, as amended in 1996, and the Provisions of OMB Circular A-133, “Audits of States, non-profits, and local organizations.” The audited FY2017 financial statements are available at www.ihda.org or in the Offices of the Auditor General in Chicago and Springfield, Illinois.
i. Pursuant to Title II of the Americans with Disabilities Act as amended (ADA) of 1990 (42 U.S. C. §§12101 et seq.) and Section 504 of the Rehabilitation Act of 1973, as amended (Section 504) (29 U.S.C. §794) the Illinois Housing Development Authority (IHDA) does not discriminate against qualified individuals with disabilities in its policies, or in the admission of, access to, treatment of or employment in its programs, federally assisted programs, services or activities. IHDA will provide special communication assistance to persons with vision and/or hearing impairment. IHDA has designated the following person responsible for coordinating compliance with the nondiscrimination requirements.
OUR STATE AND FEDERAL RESOURCES
State and federal resources allocated by IHDA also help us to finance quality affordable housing and avert home foreclosures across Illinois. In FY2017 these resources included:
S T A T E
- Abandoned Properties Program
- Affordable Housing Tax Credits
- Affordable Housing Trust Fund
- Cook County Mortgage Foreclosure Mediation Program
- Foreclosure Prevention Program
- Foreclosure Prevention Program Graduated Fund
- Rental Housing Support Program
F E D E R A L
- Hardest Hit Funds
- HOME Investment Partnerships Program
- Low-Income Housing Tax Credits
- Mortgage Credit Certificates
- National Foreclosure Mitigation Counseling
- National Housing Trust Fund Program
- 811 Rental Assistance